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AMERICA EDITION OCTOBER 2018
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Rishi Ghuldu discusses supply chain transformation at the mining industry giant
NAVIGATING THE COMPLEX LANDSCAPE OF DATA CENTER SECURITY
Market leaders in the evolving energy market
BLAIR LOFTIS ON HOW THE COMPANY IS DEFINING THE FUTURE OF WIND POWER GENERATION
City Focus
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WELCOME
W
elcome to the October issue of our North America Edition of Business Chief. Our cover star this month is Blair Loftis, Vice President and National Director, Power Generation & Transmission at Terracon, who discusses how the business works to provide cost effective solutions, particularly within the construction cycle of wind farms. Elsewhere we speak to Mark McClain, Chief Executive Officer at identity governance company, SailPoint who discusses the importance of keeping tabs on data access and the company’s journey from US startup to a billiondollar multinational corporation. Technology has also transformed the financial sector and Business Chief spoke to CEO of IDEX, Stan Swearingen, to find out how the business is poised to revolutionise the way we pay.
Similarly, with the rising number of data breaches and cybersecurity threats, the data center market has exploded at an exponential rate. This month, CIO Advisory at PricewaterhouseCoopers (PwC), Don O’Neil notes how the company is working with businesses, in order to adapt and invest in the security of its networks. Our City Focus this month is Victoria, Canada and we also list the top 10 Chief Operating Officers in North America. Finally, don’t miss our exclusive digital reports with Goldcorp, PBL Insurance and Align Construction.
Enjoy the issue! Catherine Sturman catherine.sturman@bizclikmedia.com
w w w. b u s i n e s s c h i e f. c o m
03
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CONTENTS
08
38
TERRACON ENERGY
MARKET LEADERS IN THE EVOLVING ENERGY SPACE
26 KEEPING DATA SECURE AMID DIGITAL TRANSFORMATION
Transforming finance for a cashless future City Focus
VICTORIA
50 62 Top 10
Chief Operating Officers in North America
CONTENTS
70 Goldcorp Inc
98 PWC
84 PBL Insurance Ltd
112
128
Align
Jabil
MARKET LEADERS IN THE EVOLVING ENERGY SPACE WRIT TEN BY
DA LE BENTON PRODUCED BY
TOM VENTURO 08
ENERGY
09
TERRACON
10
PARTNERING WITH SOME OF THE BIGGEST INDUSTRY PLAYERS, TERRACON LOOKS SET TO DEFINE THE FUTURE OF WIND POWER GENERATION OCTOBER 2018
T
erracon has been delivering consulting engineering services to clients for more
than 50 years. The company, based in Olathe, Kansas, is an employee-owned engineering consulting firm that provides environmental, facilities, geotechnical and materials services across a number of strategic business sectors, including power generation, oil and gas, transportation and facilities.
ENERGY
11
It is this power generation market, particularly wind power generation, that is currently experiencing significant growth like never before. For Blair Loftis, vice president and National Director, Power Generation & Transmission at Terracon, key to this growth has been the impending expiration of the production tax credit in 2019. This means that companies constructing wind facilities from 2019 onwards will receive a lower tax incentive than in previous years.
w w w.busi ne ssc hief. com
TERRACON
Vision, Innovation, Development
Wind Stone Constructions works as an ambitious company and with a great work spirit, we are specialists in civil works/engineering and P&H foundations for wind turbines. Our commitment is to develop projects promoting the transformation of our environment and fostering the economic, social and environmental development. LEARN MORE
HEADQUARTERS: Avenida Las Cumbres 171 Colonia Colinas del Vergel, 98085. Zacatecas, Zacatecas Mexico. MEXICO CITY: Avenida Paseo de la Reforma 296 Colonia Juarez, 06600. Mexico City, Mexico.
www.wsc.mx/en | wsconstructionsmex@gmail.com |
OCTOBER 2018
ENERGY
“ That’s what we are doing at Terracon, we are working with these large companies and we are providing innovative solutions that help reduce those costs” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon
“The existing production tax credit
Lowering the corrugated metal pipe into the foundation excavation
cycle of a wind farm goes into the
(PTC) expires in 2019 and this is forcing
turbines themselves, with the remain-
a number of companies to find ways to
ing 50% going into ‘balance of plant’
fill the incentive gap,” says Loftis. “In
(BOP): roadways, conductor systems
losing those tax incentives, more and
and other infrastructure elements and
more companies are now seeking out
half of the BOP cost is the foundations.
ways to reduce capital costs. “That’s what we are doing at Terra-
The key then for Terracon is finding where it can add value into that con-
con, we are working with these large
struction cycle, and it has located it in
companies and we are providing
the wind turbine foundations.
innovative solutions that helps reduce those costs.”
As the wind energy market grows and the PTC expiration date draws
Loftis notes that 50%of the capital
near, these developers are looking for
expenditure within the construction
bigger returns on each wind turbine w w w.busi ne ssc hief. com
13
TERRACON
Williams Form Engineering Corporation has been providing threaded steel bars and accessories for in the construction industry for over 95 years. Each wind tower supported by a Williams foundation anchor bolt can be relied upon to perform flawlessly throughout the life of the turbine. www.williamsform.com info@www.website.com LEARN MORE 8165 Graphic Dr. Belmont, MI 49306 Phone: (616) 866-0815 Fax: (616) 866-1890
“BUILDING STRONGER FOUNDATIONS” jbsenergysolutionsllc.com
P&H “Anchor Foundation”
P&H “Tensionless Pier Foundation”
JBS Energy Solutions is fast becoming the go to company to provide scalable design and build solutions specifically for the Patrick & Henderson wind turbine foundations and existing foundation upgrades. We provide a complete foundation package, from initial engineering through final construction.
OCTOBER 2018
ENERGY
they construct. Technological advance-
have been constructed with a gravity
ments in wind turbine generators has
spread foundation design, but with the
afforded an opportunity for larger
additional mass at the top of the tower
machines. This equates to a signifi-
from these larger machines the industry
cant increase in the turbine size, tower
was ripe for a paradigm shift.
height and blade length. In turn, the
That shift was brought about by the
foundation system grows larger and
Patrick & Henderson (P&H) Tension-
more expensive.
less Pier Foundation: a design that
The market is moving towards larger
requires less than a third of the amount
turbines for land-based applications;
of concrete and steel and 25% less
from a typical size in the 2-megawatt
excavation and backfill when construct-
family to turbines rated at 3-3.5
ing the larger wind turbines. Accord-
megawatts. Traditionally, the turbines
ing to Loftis, an experienced crew can 15
1965
Year founded More than
4,000 Employees
More than
140 offices nationwide w w w.busi ne ssc hief. com
TERRACON
“ What we are doing with our foundation systems is making the typical gravity spread foot foundation functionally redundant in the marketplace” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon
Blount Contracting is a full service civil construction company specializing in mass excavation, shoring, renewable energy – civil grading and P & H foundation installation.
blountco.com 1353 S Vista Rd Apache Junction AZ 85119 • 480-985-2112 • info@blountco.com
ENERGY
The inner corrugated metal pipe is ready for backfill 17 complete at least five foundations per
to conventional standards of modelling
week under favourable site conditions.
so we could get that in front of the
“We work with specialty foundation
independent engineering community.
contractors like JBS Energy Solutions,
Once we started doing that, we got
Blount Contracting, and Wind Stone
the industry and market comfortable
Construction who have honed their skills
with Terracon assuming this role as the
for installing our foundation design.
engineer of record.
Some engineer, procure, construction
“It has been a team effort. We have
(EPC) contractors, such as Blattner
a tight group including Allan Henderson,
Energy have resourced so that they can
the inventor of the foundation, two
construct our foundations on multiple
preferred materials suppliers (Contech
projects simultaneously,” says Loftis.
Engineering Solutions and Williams
“Terracon has spent the last few years bringing the P&H Foundation up
Form Engineering) and a quality assurance firm (Structural Observation
w w w.busi ne ssc hief. com
TERRACON
Services), and we all work together with a shared strategic platform.” One of the key ways in which Terracon has and continues to establish itself as an industry expert in foundation design is through partnering with key industry players. Through this, Terracon is able to work with and demonstrate first-hand the true value of the P&H Tensionless Pier Foundation which in turn highlights its value in terms of, at least in part, helping to fill in the tax incentive gap. Terracon has partnered with NextEra Energy Resources, one of the largest independent 18
operators of power generating assets in North America. Terracon has been able to realise as much as 40% savings in construction capital costs of NextEra’s wind turbine foundations through the P&H Tensionless Pier Foundation. “For NextEra it was an easy win,” says Loftis. “NextEra, like many companies, is faced with increased capital pressures as it deals with the expiration of the PTC. If Terracon can save one of the largest industry players 40% on 25% of their capital it is sort of a no-brainer.” Terracon’s foundation is deep and cylindrical, as opposed to the gravity foundation which is typically flat and octagonal. The standard P&H Tensionless Pier Foundation requires
OCTOBER 2018
ENERGY
only 110 cubic yards of concrete which translates to as much as 40% less concrete and 40% less steel as opposed to a gravity spread for the same size wind turbine. “It’s a significant cost saving in the industry. Especially when we’re looking down the barrel of an administration with a trigger finger on tariffs, which effects the cost of the steel and other construction materials used in the foundations. Since the pier requires substantially less steel than the spread we reduce the amplitude of this kind of market volatility,” says Loftis. Through the success of working with NextEra, Terracon was introduced to a number of engineering, procurement and construction (EPC) firms including market leaders like Blattner Energy. NextEra solicited the largest tender of wind projects in North American wind history last year. Blattner Energy won all of the projects and decided to build the majority of them using Terracon’s P&H Tensionless Pier Foundation. Terracon was retained to design more than 550 foundations for that round of projects. For Loftis, this is the clearest representation of the paradigm shift that the market was craving. “There has been a paradigm shift,
Securing the rebar hoops which maintain anchor bolt spacing
moving from the gravity spread foundation
w w w.busi ne ssc hief. com
19
TERRACON
20
to the tensionless pier foundation
the foundation is compatible with site
because it saves cost,” he says.
conditions. As Loftis notes, it’s in both
“Blattner Energy has invested heavily
parties’ interests to ensure that the
into the foundation and to me this is a
foundation is in fact suitable for each
message of industry disruption. What
specific project. “That is how we set up
we are doing with our foundation
each engagement, making sure at the
systems is making the typical gravity
earliest stages of project planning that
spread foot foundation functionally
our foundation is the optimal design
redundant in the marketplace.”
choice for project success,” he says.
Relationships are only as strong as
To this end, Terracon does things
the effort put into them and Terracon
a little differently. They look at success
recognises this, conducting rigorous
from project conception through project
compatibility reviews to ensure that
completion. “We meet with project
OCTOBER 2018
ENERGY
Securing the anchor bolts to the upper template ring
21
“ There has been a paradigm shift, moving from the gravity spread foundation to the tensionless pier foundation because it saves cost” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon
managers, superintendents, foremen, and team leaders to conduct constructability reviews and spend a day or two discussing what portions of our design give the construction folk troubles in the field,” says Loftis. “I want to know every complaint that every craftsman, supervisor, project manager and foreman has about these foundations.” “We then take that back and see if we can implement a design solution to enhance constructability efficiency. If we can revise the design to make the w w w.busi ne ssc hief. com
TERRACON
construction process easier, while still preserving the integrity of the design, then we can provide even more value to the industry. “This level of constructability design review with NextEra, Blattner and Terracon involved is something that is rarely ever done across the industry.” Over the last two years, the company has experienced significant growth in one particular sector – power generation and transmission – recording a growth rate of 20% year-on-year. With the growth of the market and Terracon’s role in defining that 22
future market, Loftis has begun work on a strategic growth plan for the next 24 months. He believes that, given Terracon’s market position, it provides him with a key understanding of where the market is heading and enables him to ensure the company is “fully equipped” for it. Looking beyond the next two years, Terracon aspires to be the industry leader in wind turbine foundation design in the United States. The company has already begun to attract attention from around the world but Loftis will ensure that whatever direction the company grows in, it will be direction of growth that benefits the wind industry. “There really is an opportunity for our
OCTOBER 2018
ENERGY
CLICK TO WATCH : ‘TERRACON – GREAT PEOPLE’ 23 foundation to support the economics of wind growth globally,” he says. “We’re going to focus on North America. We’re optimistic looking at the Latin America market, especially in Mexico, with the energy reform that’s taking place. But I would say our goal is to capture the market, get the majority of the market share in the United States and Canada, and then move into foreign markets.”
Completed foundation ready for tower construction w w w.busi ne ssc hief. com
LEADERSHIP SHOWCASE
26
KEEPING DATA SECURE AMID DIGITAL TRANSFORMATION Mark McClain, CEO of identity governance company SailPoint, discusses the importance of keeping tabs on data access and the company’s journey from US startup to billion-dollar multinational corporation WRITTEN BY
OCTOBER 2018
OLIVIA MINNOCK
27
w w w. b u s i n e s s c h i e f. c o m
LEADERSHIP SHOWCASE
W
ho has access to what, who should have access to what, and how is that access being used? These three key questions are critical (and
often headache-inducing) for any company when it comes to managing its data – and they are precisely the questions identity governance platform SailPoint looks to answer. In an increasingly cloud-based world where end-users as well as staff and companies are rightly becoming increasingly concerned with what happens to their data, SailPoint aims to help companies manage digital 28
identities so that access can be clearly defined and securely managed. Having grown into a $2.2bn NYSE-listed company, Austin-based software developer SailPoint dates back over a decade but went public in November 2017, achieving a value of over $1bn on its first day of trading, with an IPO that raised $240mn. CEO Mark McClain recalls the client server era of the early 1990s. “You had tonnes of Unix servers and Windows servers all over the place.” In 2000, McClain founded identity management company Waveset Technologies, growing the business 250% year on year for the first three years before it was acquired by the then-giant Sun Microsystems. The main issue McClain was dealing with in his Waveset days is known as joiner/mover/leaver: the granting of
OCTOBER 2018
“ The same things we worry about with people and their access now also apply to non-humans” — Mark McClain, CEO, SailPoint
29
Mark McClain, CEO, SailPoint w w w. b u s i n e s s c h i e f. c o m
LEADERSHIP SHOWCASE
access to data when a stakeholder joins an organization or moves departments, and the rescinding of this when it’s no longer needed. “People now, not just employees but contractors and business partners who can look a lot like employees, they’re certainly insiders who can
“ If you don’t know exactly who has access to what, and that they are using it correctly, bad things can happen”
access your systems and data. “Today, the interesting challenge is around non-human identities,” he
— Mark McClain, CEO, SailPoint
adds. “These are software bots or robotic processes where software is 30
effectively imitating the behavior of
the early 2000s, data access became
people, in AI and other applications.
an increasing concern – and today we
Today, it’s not uncommon for a loan
are familiar with the same issues due
to be processed initially by software
to the EU’s GDPR. “People got nervous
bots that categorize and evaluate,
that the wrong people had access to
and then go to humans for the next
data and could tamper with it – so
step… The same things
the beginnings or governance and
we worry about with people and their
compliance in the industry were
access now also apply to non-humans.”
around making sure the right people
In 2004, when SailPoint was being conceived, joiner/mover/leaver and
had access to the right information.” In McClain’s view, the industry
the associated issues were top of
evolved the wrong way around,
mind: namely, process management
automating before looking at security
and identity. “That was the emerging
elements. SailPoint, however, decided
challenge of compliance and govern-
to remedy this by looking at how well
ance,” says McClain.
a client’s current state matches its
Following the Sarbanes-Oxley act of OCTOBER 2018
desired state in terms of cybersecurity.
CLICK TO WATCH : ‘SAILPOINT DELIVERS THE POWER OF IDENTITY’ 31 “That’s the analysis of what the current
even harder to ensure data remains
access privileges are of the organiza-
‘safe inside’ a company – “but the
tion – once I get that right, then I want
processes we use assume it still is,
to run that into an automated system,”
and that’s what customers are really
McClain points out.
wrestling with. The days of being
A common issue, says McClain, is atrophy: when an organization grants access temporarily or to an employee
sloppy about access management are quickly ending.” What identity governance software,
who has moved, but then does not
and particularly SailPoint’s offering,
take the access away after it ceases
can be boiled down to are three key
to be necessary. McClain likens this
benefit areas: compliance, security
to having a bunch of keys that can open
and operational expense. In terms of
doors you don’t need – or shouldn’t
security, McClain says simply: “If you
have – access to.
don’t know exactly who has access
With shifts to cloud and mobile, it’s
to what, and that they are using it w w w. b u s i n e s s c h i e f. c o m
LEADERSHIP SHOWCASE
correctly, bad things can happen.” SailPoint aims to solve the problem of ensuring only the right people have access. In terms of compliance, SailPoint works not only to manage the ongoing maintenance of identity but also audit compliance validation of identity. GDPR is an example of where businesses, not just in the EU, need to remain compliant. “If a customer says ‘I want you to 32
forget me’, a core tenet of GDPR is that you have to know where that data is and who has access to it so you can turn it off… somewhat broader than security, GDPR is a board-level discussion and yet it’s really about identity,” he adds. Automating security and governance through SailPoint can also bring about significant cost savings. “It’s not uncommon for a 50,000-person enterprise to have hundreds of people working on nothing but joiner/mover/ leaver,” says McClain, adding that through automation this repetitive and costly process is cut down. Having started with larger organizaOCTOBER 2018
tions, around 2012 SailPoint began to target medium-sized enterprises, developing a software-as-a-service (SaaS) offering called SaaS. “Mid-size organizations today almost never buy software and install it – wherever they can, they want to buy SaaS,” says McClain, who puts this down to the fact that mid-sized organizations want a less sophisticated solution, and often don’t have the time to customize and configure. The next issue SailPoint is tackling is data being removed from its original location, often to a less secure home. “Every day, people export and download data onto spreadsheets, PowerPoints, and other documents to be stored in things like SharePoint and Dropbox.” SailPoint is therefore looking at what McClain calls ‘unstructured data’ and how AI could be utilized to protect it. “For an organization with 50,000 people and 10,000 applications, it’s hard to figure out where you might have exposure to risk,” he explains. “In most organizations, there’s no single system of records – who an employee is, what they do, and what access they have across mainframe, client server, w w w. b u s i n e s s c h i e f. c o m
33
LEADERSHIP SHOWCASE
34
‘ SailPoint dates back over a decade but went public in November 2017, achieving a value of over $1bn on its first day of trading’
cloud, SaaS… finding anomalies of access privileges is very painful.” An ongoing commitment to solving these pieces of the identity puzzle, as well as adapting solutions for businesses of various size and scale, has contributed to SailPoint’s solid growth into a mature public company. Having begun in North America, the business soon moved into the European market via London due to its volume of clients in the finance sector, and is now growing in the APAC market. Instead of opting to work with smaller
OCTOBER 2018
35
companies and branching out as the
market has certainly emerged as a
likes of Salesforce did, McClain puts
very important submarket within IT.”
SailPoint’s growth down to just the
As a final word of advice for any
opposite. “We wanted to tackle
business, McClain says that a period
some of the largest, most complex
of automation or migration to the
organizations in the world because
cloud is the ideal time to examine
we had a belief that if we could get
security. “Digital transformation is an
those folks hooked and bought into
opportunity and a reason to evaluate
our products, we could leverage that
your current state of identity controls
down the market,” he explains,
and governance and shore up your
adding that over time investors have
policies and processes to prepare
certainly ‘voted with their wallets’.
for the future. If you just take those
“They’ve come into the stock and
poor policies to the cloud, it’s going
pushed the value up – the security
to explode and get worse.” w w w. b u s i n e s s c h i e f. c o m
Covering every angle in the digital age The Business Chief platforms offer insight on the trends influencing C and V-level executives, telling the stories that matter Click to read
w w w.bu si nessch ief.com
TECHNOLOGY
38
Transforming finance for a cashless future As society becomes cashless and emerging markets demand financial access, IDEX is poised to transform the way we pay. Business Chief spoke to CEO Stan Swearingen to find out how WRITTEN BY
OCTOBER 2018
OLIVIA MINNOCK
39
w w w.busi ne ssc hief. com
TECHNOLOGY
H
aving made his career at the fore of some of the most pervasive technology innov-
ations of this century, Stan Swearingen is
no stranger to working with market makers. From Bluetooth to WiFi to touchscreen technol-
ogy, Swearingen has witnessed the earliest stages of current technology mainstays. That’s why he decided to come out of retirement and put his weight behind one more innovation: biometric technology that facilitates payment verification with just a fingerprint. Notably, in addition to serving at mobile device management developer Amtel and semiconductor 40
revolutionary Rohinni, Swearingen was previously CTO at Synaptics, the company behind the touch technology which Apple brought into the mainstream with its MP3 players, mobile phones and tablets. Now Swearingen is back for what he describes as “one more career-defining role to create a new market”. “Part of that experience is seeing the point where you’re pushing something, an idea, and you meet resistance… even when we were developing WiFi people were saying ‘No, I don’t get it’ or ‘here are all the reasons why it won’t happen’,” Swearingen reminisces. “At the front end of an emerging market the supply chain forecast is very conservative, but once that inflexion point happens, it explodes and the volume goes through the roof.”
OCTOBER 2018
“ At the front end of an emerging market the supply chain forecast is very conservative, but once that inflexion point happens, it explodes and the volume goes through the roof” — Stan Swearingen, CEO, IDEX
41
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TECHNOLOGY
42
This is what Swearingen strongly
global user base. For Swearingen,
believes is set to happen with biomet-
it’s not a question of when or if, but
ric technology in 2019. Soon, he argues,
how, biometrics will explode in the
PIN verification (and its now compara-
market. “What’s important is how you
tively archaic predecessor, swipe and
prepare yourself for that transition
sign) is set to become a thing of the
as a company,” he says.
past in favour of a fingerprint connect-
As with Synaptics and Apple, it takes
ed to payment cards, allowing the user
a technology developer coupled with
to verify payments at the point of sale
a market maker to bring about the
with just one touch.
Next Big Thing, and IDEX has found
He’s not alone: IDEX has partnered
a symbiotic partner in Mastercard.
with financial services giant Master-
“Mastercard is the market maker,” says
card, which is excited to roll out the
Swearingen. “We’ve been working with
new fingerprint technology across its
them on the total experience, not just
OCTOBER 2018
“ As society moves to a more cashless approach, reinventing the credit card with biometrics is a critical part of making that transition a reality” — Stan Swearingen, CEO, IDEX 43
technology – we are a solutions provider
print is unique to you and it’s not
partnered with a market maker.” When
something somebody’s going to guess
the CEO joined the company in 2016,
or look at over your shoulder. I think
IDEX had the perfect combination of
customers in general are even more
market maker, value proposition and
savvy regarding the dark web and
knowledge of systems and biometrics.
identity theft, and people just want to
With a plethora of fast and easy pay-
make sure their hard-earned money
ment options on the market, what is so
isn’t spirited away by somebody doing
special about the biometric element –
fraudulent acts.”
aside from the theatrical appeal of
In addition, IDEX has ensured
paying with a fingerprint? Security, of
biometric ID technology can be quickly
course, takes centre stage. “You get
deployed, with remote enrolment
a physical, unique connection with your
available for card users. “You get a card,
card,” Swearingen explains. “A finger-
you take your fingerprint and it creates w w w.busi ne ssc hief. com
TECHNOLOGY
44
OCTOBER 2018
a template which is stored in
users feel versus other methods,”
secure memory inside the card,”
he adds.
he explains. “There are multiple
While the end user is always
ways to do that. The first instance
top of mind, merchants will need
would be going into your branch
convincing that this new POS
and putting your finger into an
technology is necessary – but
optical reader, but IDEX and
Swearingen doesn’t think this
Mastercard saw that as an inhibitor
will be a problem. “Mastercard
to mass deployment, so we came
and the like are interested in
up with remote enrol, involving
frictionless transactions: easy
a simple plastic sleeve that is sent
and intuitive so the customer
in the post along with the card.”
isn’t worried about security or
When it comes to payment
anything that might cause them
methods, security goes hand-in-
to think ‘I was going to buy this
hand with convenience. “If you
item but maybe I won’t’ – obvi-
look at how someone grabs
ously the retailers want this to be
a credit card, ergonomically
frictionless as well. It’s a unified
it’s a natural movement,” says
goal. As society moves to a more
Swearingen. “They don’t have
cashless approach, reinventing
to learn something different. It’s
the credit card with biometrics is
so intuitive.” This more secure
a critical part of making that tran-
option is also set to reduce the
sition a reality.”
necessity for things like payment limits for contactless cards. “With fingerprint, this will go away. You don’t need a limit or to re-enter your PIN. We’ve done many pilots with Mastercard and the feedback has been overwhelmingly
— Stan Swearingen, CEO, IDEX
positive about how easy it is to use and how much more secure w w w.busi ne ssc hief. com
45
TECHNOLOGY
In addition, IDEX’s work will help to promote financial inclusion for those in underbanked areas. “There’s a lot of people who can’t bank today because they don’t have government ID or the things necessary to get an account – biometrics will help solve that problem as financial institutions will know the person they’re issuing the card to is a real person.” Looking to the future, Swearingen anticipates that rolling out the new technology will be similar to marketing previous concepts that seemed radical. 46
Developers like IDEX often take on more of a systems role. “You have to engineer the total solution, so we did a reference design. We did all the hard work: the hardware, software, everything so that card manufacturers could quickly come up to speed and sample products.” Already, IDEX has partnered with Taiwanese smart card solution provider JINCO and Chinese contactless card developer Feitian. “You’ll see more announcements imminently of different Tier-1 partnerships not just in China, but throughout the Asian supply chain. JINCO and Feitian have brought technical, manufacturing and channel OCTOBER 2018
“ A fingerprint is unique to you and it’s not something somebody’s going to guess or look at over your shoulder” — Stan Swearingen, CEO, IDEX
sales abilities,” says Swearingen, adding that JINCO’s access and insurance cards business and Feitian’s tokens business will help IDEX to develop across different verticals. IDEX has already made strides, especially in emerging markets where e-payment systems are leapfrogging the likes of the US, and to Swearingen this is evidence of the same take-off point he saw with the likes of Bluetooth. “We’re preparing for what we believe is this inflexion point where the demand is just going to skyrocket. We have to be prepared to support many customers and make sure we have all the tools, documentation and talent necessary,” says the CEO, who expects millions of biometric units to have been deployed by the end of 2019. Indeed, recent studies supported by IDEX outlined that 90% of customers would switch card issuer to one offering biometric technology if their incumbent did not. “The likes of Mastercard, Visa, American Express… biometrics is a vehicle for them all to take share from one another,” Swearingen concludes. “For IDEX, this coming year is all about scale and making sure our supply chain has all the technical support needed.” w w w.busi ne ssc hief. com
47
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CITY FOCUS
VICTO City Focus
50
The oldest city in the Pacific Northwest and the capital of British Columbia, Victoria has placed significant investment in its infrastructure without compromising on what it values most WRITTEN BY
OCTOBER 2018
CATHERINE STURMAN
ORIA 51
w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | VICTORIA
C
onsistently ranked as one of
diverse city has placed significant investment
the world’s top 10 friendliest
in its infrastructure to cater towards its growing
cities by Condé Nast, Victoria,
numbers, without compromising on its stun-
Canada, remains a top destination of choice for corporate and leisure travelers.
Housing world-renowned educational establishments such as the University of Victoria as
Following the Gold Rush and
well as a flourishing business focus, the city
subsequent industrialization of the
has gained one of the lowest unemployment
19th century, Victoria’s rich history
rates in Canada and has been ranked as
combined with a unique modern
Canada’s Best City to Live in (for Women).
twist has created a fusion of cul-
Additionally, it was recently voted amongst
tures and traditions, attracting over
the top 10 rising star locations for meetings
1.9mn tourists in 2017.
and conferences in Smart Meetings Magazine.
However, with a population 52
ning landscapes.
of 85,792 citizens, the thriving,
Positioned close to Vancouver and Seattle, Victoria is home to a large western naval base,
“ The city has gained one of the lowest unemployment rate in Canada and has been ranked as Canada’s Best City to Live in (for Women)” OCTOBER 2018
an established fishing fleet and a booming IT sector, offering a high quality of life for those situated in nearby cities. Enticing businesses, investors and developers in areas ranging from commercial and retail to real estate, the city’s business hub provides a vital base for budding entrepreneurs wishing to establish a new business or invest in the city. Additionally, the Downtown Victoria Business Association (DVBA) also supports over 1500+ members, and provides a number of grant programs, such as a Clean, Safe and Sustainable Grant and Marketing and Events Grants, as well as offering essential contacts, agents or com-
367,000 Population, Greater Victoria Area
3.4bn Number of ‘blooms’ in Victoria, 2018
1.9mn Tourists who visited Victoria in 2017
panies to enable new businesses to prosper.
53
PICTURE BY CNICBC
w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | VICTORIA
A growing infrastructure As the city continues to grow in popularity, numbers utilizing Victoria International Airport have surpassed 1.9mn per annum. With this in mind, Victoria Airport Authority has announced plans to invest $24.9mn (CAN$19.4mn) in doubling the size of its lower passenger department lounge, incorporating the construction of new aircraft procedures, increased security and new food and beverage facilities for travelers 54
to enjoy.
OCTOBER 2018
Providing direct flights to nearby Vancouver, Toronto, Calgary and Montreal, the airport also offers links to Edmonton and Kelowna. Additionally, services to San Francisco and Seattle also remain popular with residents and tourists alike. For those who want more of a sightseeing experience upon leaving the airport, the city has embraced the use of float planes and ferries, providing spectacular views of the city and its local wildlife, in particular Canada’s iconic whales and seals, before entering Victoria’s iconic Inner Harbor. Those exploring the city on foot will not be disappointed either: Victoria is home to one of the best pedestrian-centered infrastructures in Canada, with many transport options on offer.
w w w. b u s i n e s s c h i e f. c o m
55
CITY FOCUS | VICTORIA
City of Gardens Underpinned by the city’s Regional Transit System, commuters are provided essential connection links to all transportation routes, as well as access to the Greater Victoria Area, home to over 367,000 citizens. Nicknamed the ‘City of Gardens’, featuring a total of over 3.4bn blooms in 2018, Victoria has been recognized as one of the top 10 smallest cities in the world, but one which is vibrant and beautiful. With a number of outdoor activities on offer, its pedestrian-friendly pathways have filtered into its Pedestrian 56
Master Plan to maintain and enhance the quality of life of residents and visitors, increase the number of trips made and guarantee safety every time. With 48 regional, provincial and federal parks to explore, totaling close to 8,000 hectares, Beacon Hill Park, downtown Victoria, is popular for those who wish to escape the hustle and bustle of the city. Close to a number of transport links and hotels, the park is renowned for housing the world’s largest free-standing totem pole, in homage to its aboriginal history.
Within downtown Victoria, the oldest surviving Chinatown in the world, Fan Tan Alley, is renowned for its unique shops and restaurants. Once a popular gambling district, it has gained the title of the narrowest commercial street in North America at 0.9 meters wide (at its narrowest). Additionally, Victoria’s 19th century shipping and fur trading businesses can be visited in Old Town, where visitors can stumble upon historic landmarks, become part of the city’s bustling restaurant scene and gain stunning views of the city’s harbour. 57
“ With 48 regional, provincial and federal parks to explore, totaling close to 8,000 hectares, Beacon Hill Park, downtown Victoria, is popular for those who wish to escape the hustle and bustle of the city” w w w. b u s i n e s s c h i e f. c o m
CITY FOCUS | VICTORIA
58
Sustainable living As the population of the city of Victoria is predicted to rise to unprecedented levels in the next decade, the city has invested heavily in its transportation links to bolster sustainability, reduce emissions and guarantee exceptional quality of living for its residents. With a number of regional trail networks, Victoria is passionate about fully promoting healthy living; it has embedded more cycle routes than any other Canadian city. Such investment has led sports enthusiasts, leisure seekers and corporate travelers to take full advanOCTOBER 2018
which has established targets to increase the amount of trips by residents commuting to work to be undertaken via walking, cycling and/or public trantage of the city’s rugged coastlines.
sit by 70% by 2041.
Consequently, a recent study by the
Victoria’s historic charm, boutique
Capital Regional District (CRD) and
shops and stunning scenery will all
Statistics Canada has found that sig-
be significant factors which will drive
nificant numbers are now choosing to
ongoing tourist figures. However, with
walk, cycle and utilize public transport
a strong emphasis and commitment
in the city, with the number of drivers
to foster business growth, whilst devel-
down by 34%.
oping a sustainable future and robust
Victoria’s long term aim to build a
infrastructure, the city is set to unlock
robust cycling infrastructure network
further economic development and
to encourage increased numbers to
provide tremendous opportunities for
engage in sustainable living is also
anyone wishing to take full advantage
reflected in its Official Community Plan,
of all the city has to offer. w w w. b u s i n e s s c h i e f. c o m
59
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ave and extra 25% with code PMRO18SCD. egister at procureconmro.com
T O P 10
Top 10
62
Chief Operating Officers in North America In this month’s Business Chief North America, we take a look at the top 10 companies based on published annual revenues — but which COOs are driving their success? WRITTEN BY
OCTOBER 2018
CATHERINE STURMAN
63
w w w. b u s i n e s s c h i e f. c o m
T O P 10
09
Belinda Johnson, Airbnb With bookings growing by up to 150% in 2017, vacation rental company Airbnb has gained significant ground, gaining $2.6bn in revenue last year. In a bid to further support its growing customer base, particularly the corporate traveler market, as well as launch
10 64
team building and meeting services, Chief Operating Officer, Belinda John-
Amy Bohutinsky, Zillow Group
son has sought to bring various teams
Having worked in a number of senior
and deliver essential guidance within
level roles at real estate company, Zillow
payment platforms.
Group, Amy Bohutinsky was appointed
www.airbnb.com
Chief Operating Officer in 2015, becoming an established pioneer within the industry. Reporting $1.1bn revenue in 2017, Zillow is gaining significant traction, leading Bohutinsky to further develop the business’ core brand strategy across its diverse portfolio. www.zillowgroup.com
OCTOBER 2018
together, enhance the safety of users, transform the customer experience
07
Sheryl Sandberg, Facebook Accumulating a reported net worth of over $1bn, Facebook’s COO Sheryl Sandberg is one of the most influential women in technology, and helped the business achieve $40bn in revenue in 2017. Part of Facebook’s leadership
08
Todd White, Goldcorp With two decades of experience managing large-scale projects, Todd White
team since 2008, she has written international bestsellers, such as Lean In and Option B, and led successful discussions on Ted Talk, empowering women to enter the sector and to grab opportunities within the corporate world. www.facebook.com
was appointed as Goldcorp’s Executive Vice President and Chief Operating Officer in 2017. Accumulating $3bn in 2017, White has driven continuous improvement across the Canadian mining business, implementing new technologies and data analytics to drive all corporate and environmental goals. The company has recently achieved its target of $250mn of sustainable efficiencies across its operations. www.goldcorp.com
w w w. b u s i n e s s c h i e f. c o m
65
T O P 10
05
John J. Mulligan, Target Corporation Recently announcing its best quarter results this year, popular US retailer, Target, has seen sale figures rise significantly, with an annual revenue of $72bn announced this year. Driving the busi-
06
Albert Bourla, Pfizer 66
ness’ store capabilities, as well as its global supply chain, merchandising operations, properties and flight services, Executive Vice President and Chief Operating Officer, John J. Mulligan
Known as a key innovator across the
has worked to streamline the company’s
healthcare industry, COO at Pfizer,
various divisions since 2015.
Albert Bourla, led the business to amass
www.target.com
a cool $54bn in 2017. Renowned for developing the company’s Patient and Health Impact group, Bourla’s worldwide experience has seen the business increase patient access, develop scalable solutions and drive further success. A Doctor of Veterinary Medicine, Bourla also gained a PhD in the Biotechnology of Reproduction from the Veterinary School of Aristotle University in Greece. www.pfizer.com
OCTOBER 2018
03
Jonathan C. Roberts, CVS Health Having worked at pharmaceutical giant CVS Health for over 25 years, Jonathan C. Roberts was appointed Executive Vice President and Chief Operating Officer in 2017. Serving
04
over a million patients per annum, the company’s integrated healthcare
Catherine P Bessant, Bank of America
model has sought to improve patient
Since 2010, Bank of America’s Chief
organization, achieving $185bn in
Operating Officer, Catherine Bessant,
revenue in 2017.
has sought to enhance the organiza-
www.cvshealth.com
outcomes, lower ongoing healthcare costs and deliver results across the
tion’s digital capabilities, providing essential end-to-end solutions for customers in over 30 countries. Achieving $87bn in company revenue in 2017, Bessant is frequently recognized as one of the most powerful women in banking. Leading a team of 100,000 employees, she is passionate about embracing new technologies, such as artificial intelligence and cyber security. www.bankofamerica.com
w w w. b u s i n e s s c h i e f. c o m
67
T O P 10
68
02
Brian Tyler, McKesson Recently appointed as President and COO, Brian Tyler has sought to bolster the ongoing success of Fortune 500 giant McKesson Corporation. A global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, as well as health IT, Tyler will be a key figure in the business’ global expansion, enhancing its supply chain capabilities and improving patient care, gaining $198bn in revenue in 2017. www.mckesson.com
OCTOBER 2018
01
69
Jeff Williams, Apple Gaining worldwide fame within the consumer technology space, from the development of the iPhone to the iconic Apple Watch, technology giant Apple has become an inspiration for start-ups and large corporations alike. Part of the business for over 20 years, Jeff Williams was appointed COO in 2015, and continues to work closely alongside Chief Executive Officer, Tim Cook. This strong partnership has enabled the business to gain a staggering $229bn in 2017, with a long-term aim to tap into further markets, such as healthcare. The launch of its own health clinics for employees, as well as the development of a Health Records API (application programming interface) for developers and researchers, shows that no industry is too tough for the company to crack. www.apple.com
w w w. b u s i n e s s c h i e f. c o m
70
MINING
Driving a Supply Chain revolution at Goldcorp
WRIT TEN BY
JA MES HENDERSON PRODUCED BY
GLEN WHITE
71
GOLDCORP
Rishi Ghuldu has spearheaded a Supply Chain transformation over the last 18 months at Goldcorp, backed by the company’s senior management
G 72
oldcorp set an ambitious target as part of its 20-20-20 strategy; which meant to increase production by 20%, reduce
cost by 20% and increase its reserve base by 20%. To support this important goal for the Company, Rishi Ghuldu, Goldcorp’s Vice President of Supply Chain & Asset Management, sat down with the company’s Chief Operating Officer, Todd White, to discuss how the company’s Supply Chain was performing and at what pace it was maturing. There was a realisation that while progress was being made, the trajectory of change was not where it needed to be. Ghuldu and White decided that Goldcorp needed to demonstrate real change in a matter of months, rather than years or even decades. The decision was made to push the accelerator and challenge the Supply Chain and Procurement function to quickly prove its value to the business, allowing it to emerge from a back-office OCTOBER 2018
The Goldcorp team
MINING
73
function to a team with a voice at the company’s top table. In Ghuldu’s own words: “We really wanted to catapult ourselves forward.” A deep dive into the company’s Supply Chain function was undertaken, as well as a close study of successful Supply Chain transformations both within mining and other sectors. “We mapped out where mining is
From left, Goldcorp’s Ivan Mullany (SVP Technical Services) Rishi Ghuldu and Todd White, (EVP & COO)
relative to other industries in terms of Supply Chain maturity, and we felt it was lagging. Each of our mine sites were doing their own thing, which was often w w w.busi ne ssc hief. com
GOLDCORP
CLICK TO WATCH : ‘GOLDCORP TEAM TESTIMONIALS — SUPPLY CHAIN DIGITAL TRANSFORMATION 74 correct, but we were certainly miss-
every day. Getting the change approved
ing out on a number of opportunities.
involved conversations with Goldcorp’s
We took the decision to centralise our
investment committee, Mine Manag-
Supply Chain enabling us to leverage
ers and the Executive team. It was so
our portfolio strength – this was really
important to get our team to under-
vital to our transformation.”
stand the thinking behind the move. We
Goldcorp is a company that is pre-
pinpointed to some early wins and were
dominantly decentralised so a great
able to build momentum and support
deal of work went into building the
for the transformation.” Ghuldu and his
business case to centralise the Supply
team studied how other companies had
Chain function.
turned their Supply Chain and Procure-
“Technically, the decision to migrate
ment functions from a largely lethargic
the function is not too difficult,” he says.
function to one that added tangible
“But the company’s Supply Chain
value. The key was found to be a fun-
touches thousands of our employees
damental change in attitude.
OCTOBER 2018
MINING
“To be successful, we had to be candid about our capability of doing
to be an industry leader – we’re not gunning for second place.”
this ourselves, so we took our ego out
“We took the decision to go ‘all-in’,
of the equation. We realised that there
so each of our sites is in the process
were companies around the world we
of being converted to the new model.
could build partnerships with that are
It’s a lot of change in a short amount
very skilled at what they do – we under-
of time but it’s been communicated in
stand that we can’t do it all ourselves.
a clear and consistent fashion and we
We believe that by forming this part-
completely believe there is value in do-
nership, we have been able to achieve
ing it this way rather than over a longer,
in 18 months what companies going at it
phased period of time.”
alone might take seven or eight years
Ghuldu is keen to stress that under
to achieve. That’s enabled us to over-
the new model, it is the planning of the
take some of our competition. We want
Supply Chain that is centralised, with
E X E C U T I V E P R OF IL E
Rishi Ghuldu Rishi Ghuldu is currently Vice President, Supply Chain & Asset Management at Goldcorp Inc. Rishi’s expertise includes formulation and implementation of enterprise Business Improvement strategy, global supply chain management, asset management, change management, and merger integrations. Prior to joining Goldcorp, Rishi led Barrick’s Business Improvement function and worked with the Supply Chain group to launch Barrick’s Supplier Development Program. Rishi started his career in the automotive industry and holds a Manufacturing Engineering degree from McMaster University and an Executive MBA jointly offered by Kellogg-Schulich (Northwestern/York University) School of Business. w w w.busi ne ssc hief. com
75
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© 2018 ExxonMobil. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee.
MINING
“ We have been team meets regularly with senior manable to achieve agement, corporate and finance to in 18 months talk about the potential spend over the next 12-24-month period, and define what companies sourcing opportunities. From there, a going at it alone decision is made about whether an opportunity exists for a single site, a might take seven regional opportunity – taking in three or eight years to four mines or a global opportunity. “We then report back to the operato achieve” the individual sites overseeing the ex-
ecution. Specifically, the Supply Chain
tions, because that’s where most of
our purchasing takes place. To a large extent, we’re able to provide what each site is going to target in terms of spend,
— Rishi Ghuldu, Vice President of Supply Chain & Asset Management
and what their respective savings
picture and of the supplier base, which
targets are going to be for the follow-
greatly impacts how the negotiation
ing year and the year after. Sites know
takes place and how we are able to
their goals and what opportunities they
drive results.”
can leverage,” Ghuldu comments. The transformation has also been
“As we were designing our future state, we wanted to avoid creating the
built on access to market intelligence,
best Supply Chain in the world but rather
with professionals communicating
the best Supply Chain for Golddcorp;
regularly with Goldcorp about global
thus not aiming for functional excel-
trends, commodity performance and
lence but for business excellence.”
how foreign exchange rates might impact a project or an initiative.
The transformation has truly increased the spotlight on the company’s Supply
“When we are sitting across from
Chain planning and execution, in turn
our suppliers, we are now equipped
making the function an integral part of
with more knowledge of the broader
Goldcorp’s wider goals. w w w.busi ne ssc hief. com
77
GOLDCORP
“ We want to be an industry leader — we’re not gunning for second place” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management
78
board, the auditors and the market, we have to deliver on our plans. The transformation is really helping our business become more competitive and sustainable, while lowering costs.” A case in point is a 40% improvement in the time it takes for a purchase requisition to be converted into an issued purchase order. According to Ghuldu, that has been achieved by standardising processes and rolling out success-
“Prior to this transformation, we had
ful initiatives from one site across all of
some targets within the Supply Chain
its mines. It is a more consistent, higher
function that were generally fairly
level of service, leading to improved
low; without a lot of questioning around the targets or ac-
confidence from clients, he says. Working through cross func-
countability for realisation of
tional teams on the sourcing
those targets. Supply Chain
front, Goldcorp has been able
was not an integral part of the
to achieve significant savings
overall planning process.
through competitive bids
Because of this trans-
that have resulted in
formation, our per-
locked-in savings that
formance numbers
are in the tens of
are now significant
millions of dollars.
enough that Supply
The company
Chain is an impor-
has also been able
tant part of the
to provide growth
operations budget.” Because of this critical focus from the OCTOBER 2018
— Fernando Carrascal, Director, Global Procurement
opportunities for its professionals, says Ghuldu: “We are
MINING
CLICK TO WATCH : ‘RISHI GHULDU VICE PRESIDENT — SUPPLY CHAIN & ASSET MANAGEMENT AT GOLDCORP 79 starting to operate as a more cohesive
successful collaboration between;
global team, and provided expanded
Operations, Asset Management, IT, Fi-
roles for our Supply Chain staff, wheth-
nance and HR teams within Goldcorp.”
er that’s the site leaders who are now
Despite such a successful transition,
managing offshore teams or global
Ghuldu is still looking to the future, still
category managers taking on addition-
looking for opportunities to improve.
al categories. We have more resources
Part of that effort is integrating cut-
at our discretion than we have had be-
ting-edge technology into the Supply
fore, which means more opportunities
Chain function.
that we can realize.” Ghuldu recognises that Supply Chain
“We’ve been able to put foundational processes in place and started to gener-
is but one spoke of a larger wheel at
ate results, so we can look forward. The
Goldcorp and is keen to highlight the
thing I believe is going to be the next,
whole value chain of its Supply Chain
call it, Supply Chain disruption in our
maturity. “It is a reflection of the hugely
business is how we do demand planning. w w w.busi ne ssc hief. com
GOLDCORP
80
£3.42bn Approximate revenue
1994
Year founded
14,094
Number of employees (2017)
OCTOBER 2018
MINING
“The transformation is really helping the business become more competitive and sustainable, while lowering costs” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management
w w w.busi ne ssc hief. com
81
GOLDCORP
“ We could not have done this without the overarching support from our senior leaders” — Rishi Ghuldu, Vice President of Supply Chain & Asset Management
82 So, it’s about integrating the planning of Operations, Asset Management and Supply Chain, and doing so in a real-time manner,” Ghuldu comments. “We can utilize technologies such as condition monitoring and end-to-end
becomes more of a check, rather than to generate a demand plan.”
visibility of our Supply Chain, which
“There have been critical lessons
helps us understand what parts you
along the way,” he says. “Acknowledg-
need, what parts are sourced, lead
ing our gaps and taking accountability
times for delivery of parts . Before
for areas where things should have
even realising that a part is needed,
been done better is the only way we
the system has identified the pattern
can improve going forward. Humility
because we have an algorithm in place
goes a long way.”
to be able to detect certain conditions that are lining up. Human intervention OCTOBER 2018
Ghuldu couldn’t have achieved what he has without one core component,
MINING
83
From left, Fernando Carrascal, Amy Hu and Rishi Ghuldu his team. “To undertake such a chal-
The exciting question for the business
lenging task, we could not have done
– if not its competition – is if so much
this without the overarching support
can be accomplished in 18 months,
from our senior leaders and as well
what could be achieved over the coming
as standout performances from the
five years?
Supply Chain team members. This transformation has provided a great platform for our Supply Chain team to rise to the occasion and demonstrate not only functional expertise but also leadership.” w w w.busi ne ssc hief. com
TM
INSURANCE LIMITED
84
TECHNOLOGY
Rewriting the rule book for Canada’s insurance brokers WRIT TEN BY
L AUR A MULL AN PRODUCED BY
GLEN WHITE
85
PBL INSURANCE LIMITED
Delivering one-to-one insurance services with cutting-edge technologies, PBL Insurance is reshaping the way Canadian insurance brokers do business
D
igitization is shaking up industries across the globe and it seems the insurance sector is no exception.
For PBL Insurance, which has provided risk and insurance services to Canadians for almost a century, there was no doubt that digitization would be a central pillar of 86
its strategic plan. The firm’s Director of Technology, Joey Faraone, says that by undertaking a root-and-branch digital transformation and overhauling its legacy systems, PBL Insurance is “re-writing the way insurance companies do business in Canada”. “I would say that technology is playing a very big role in driving PBL’s transformation,” he explains. “We went from having some very old technology pieces running our network to understanding that now is the time to invest and prepare the company for the next 20 years of the technology curve.” Previously, Faraone says that PBL Insurance didn’t have a focused internal OCTOBER 2018
TECHNOLOGY
87
w w w.busi ne ssc hief. com
PBL INSURANCE LIMITED
88
OCTOBER 2018
TECHNOLOGY
technology direction and so the Canadian firm decided to bring its digital strategy in-house. “The company wanted to get a better grasp on today’s technology and look at where technology will take the insurance industry in the future,” he says. “I was brought in to lead the development and management of new technologies and ensure that they align with the company’s business strategy.” Becoming a digital broker is no easy feat, but this transformation was firmly at the top of PBL’s agenda. Starting from the ground
89
up, the Ontario-based company set up brand new back-end infrastructure, including new fiber circuits, routers and E X E C U T I V E P R OF IL E
Joey Faraone is a dedicated, dynamic and enthusiastic certified IT professional who specializes in project managing innovative data solutions to improve system stability, functionality and efficiency. Faraone is quick to familiarize himself with the latest technologies and industry developments while demonstrating a logical and analytical approach to solving complex problems and issues. Faraone is the Director of Technology at PBL Insurance where he possesses excellent interpersonal and communication skills and the ability to develop and maintain positive internal and external relationships.
w w w.busi ne ssc hief. com
PBL INSURANCE LIMITED
90
switches. “We’re wiping the slate clean
software. In using a cloud-based,
and redesigning everything. We’re rolling
analytics-driven system, Faraone says
out new technologies to help us minimize
it’s reducing administrative burdens
the equipment footprint but not sacrifice
while simultaneously enhancing the
the service to our clients,” says Faraone.
visibility of its operations.
One of the company’s most cogent
“We are the first Canadian company
uses of technological innovation has
to move to the TechCanary platform,”
been how it has selected a new cutting-
notes Faraone. “You could say there’s
edge broker management system. By
a lot of eyes on us to see how the
adopting TechCanary, a solution based
solution is being rolled out in the
on Salesforce’s platform, PBL Insurance
Canadian market.” With such a wide
is breaking away from the confines
range of clientele and data, Faraone
of traditional insurance technology
believes that the platform will help
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TECHNOLOGY
“ We have a one-on-one direct relationship with our clients. Our brokers, our Account Executives and our staff treat our clients and customers as one of their own” — Joey Faraone, Director of Technology
91
the company meet its customers’ needs
data optimization and analytics while
and see what else it can do for them as
leveraging a breakthrough in routing
an organization. “It means that we don’t
efficiencies, enhancing performance
have a one-way path for our clients, we
and reliability with the flexibility and
can have a four-lane highway,” he notes.
affordability of a cloud service.
Shifting away from costly, hardware-
“With our new network being rolled
defined private networking solutions,
out, we’ve also put a lot of new con-
PBL Insurance has also implanted
tracts in place and we’ve implemented
a new software-defined wide-area
a new managed service provider (MSP),”
network (SD-WAN). This gives PBL
Faraone says. “This is helping us roll
the ability to leverage efficiencies and
out our network and enhance our user
create a more reliable network. It also
experience internally. The experience
gives the broker the option to use
that our internal staff has been used to w w w.busi ne ssc hief. com
PBL INSURANCE LIMITED
versus where they are today has been
know where all of our data is and that
a complete 180-degree turnaround.”
it’s accessible to us at a drop of a hat.
Cloud technology has been a major
“It’s promoting efficiency and produc-
trend in the insurance industry. Aside
tivity, but it will also change the customer
from its ability to lower costs and boost
experience,” he continues. “By using
productivity through mobile working,
cloud technologies like TechCanary,
it also offers a business continuity plan
our customer will be able to get faster
and security. Not one to stay in the
quotes and faster service while we tie
shadows, PBL Insurance is embrac-
everything together.”
ing cloud technology through its new
92
With cutting-edge technologies being
broker management system and
rolled out every day, technology partner-
colocation site.
ships have become critical to any digital
“We are moving towards the cloud
transformation. Faraone believes that
more and more every day,” Faraone
the company’s alliance with technology
says. “There’s no downtime and there’s
innovators like MicroAge is helping to
no lag, so efficiency is huge with this roll out. It’s ensuring that slow technology isn’t being used as a scapegoat. Our new broker management system also uses cloud technology which means our Account Executives can log into our system from anywhere and do business right on the spot. “We also have a very good system where we back up everything on our network nightly and then we move it to a colocation site which has its own back-up there. Then we move it to the cloud,” he continues. “It may sound like there’s a back-up of a back-up, but it’s very important to make sure that we OCTOBER 2018
TECHNOLOGY
93
“ We are the first Canadian company to move to a TechCanary platform. You could say there’s a lot of eyes on us to see how TechCanary is being rolled out in the Canadian market” — Joey Faraone, Director of Technology
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PBL INSURANCE LIMITED
drive new ways of thinking. “MicroAge is a global company which provides insights with network engineers,” Faraone explains. “We collaborate to work on developing and understanding the latest technologies to see how we can implement them here at PBL Insurance. We have continuous improvement sessions on how we can cut a little here, add a little there. This ensures that we run in a very lean but efficient way.” Behind any successful transformation is the right team and a culture that fosters innovation. With this in mind, 94
PBL Insurance strives to engage staff by asking for opinions on the direction they’d like to see the company go. “When we decided to change broker management systems there were a lot of discussions, not just at the top but among all users about who is going be impacted by it. It’s changing the complete way our staff do work on a day-to-day basis,” comments Faraone. “The system was received very well. I think the fact that we are evolving our technology and our way of doing business is helping to attract top talent to the company because they want to be part of this journey.” OCTOBER 2018
TECHNOLOGY
CLICK TO WATCH : ‘TECHCANARY OVERVIEW’ 95 With over 200 employees and 10 offices spread throughout the province, PBL prides itself on being uniquely Ontario based. Driving efficiency and productivity with its new digital tools, Faraone says that this transformation is not just reducing costs and administrative burden, it’s also freeing up more time so that it can give its clients the personable and responsive service they expect. “We have a one-on-one direct relationship with our clients,” notes Faraone. “I think that’s where we differ from other brokers. With 10 strategic w w w.busi ne ssc hief. com
PBL INSURANCE LIMITED
96
“ We’re wiping the slate clean and redesigning everything.We’re rolling out new technologies to enable us to minimize the equipment but not sacrifice the service to our clients” — Joey Faraone, Director of Technology
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TECHNOLOGY
office locations throughout the province, we have the ability to service our clients locally, and we take pride in servicing communities big and small in Ontario. Our brokers, our Account Executives and our staff treat our clients and customers as if they are one of their own.” Technology and customer service go hand in hand at PBL Insurance, and as the industry shifts under the influence of the technological revolution it seems the company is ready for any dynamic changes that may come its way. “In five or 10 years, I expect PBL Insurance will be the top broker in Ontario, building partnerships yearly with other brokerages in the industry,” predicts Faraone. “I believe we will be a leader in innovation and that we will be an example to other brokerages on how they can leverage the latest technology to their advantage. It’s not always about spending the most money and getting the latest and greatest, it’s about understanding and fine-tuning technology to your company’s needs.”
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97
NAVIGATING THE COMPLEXITY OF DATA CENTER SECURITY WRIT TEN BY
DA LE BENTON PRODUCED BY
TOM VENTURO
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w w w.busi ne ssc hief. com
PWC
100
PWC WORKS WITH CORPORATIONS ALL OVER THE WORLD TO UNDERSTAND AND NAVIGATE THE CHALLENGE OF DATA CENTER SECURITY
O
ver the last decade, the data
“The technology of today is present-
center market has exploded
ing companies with the ability to very
at an exponential rate.
closely monitor,control and segment
Technology, namely infrastructure and
the network across their entire
network capabilities, has completely
enterprises. However, that doesn’t
defined and redefined the way in which
necessarily make the task at hand
businesses all over the world operate.
any less challenging”
“Technology has really come a long
O’Neil has worked in the technol-
way from very flat, uncontrolled
ogy space for more than 30 years
networks that defined the 90s,” says
and in that time, he has witnessed
Don O’Neil, Director, CIO Advisory at
first-hand this shifting landscape.
PricewaterhouseCoopers (PwC).
Having been active during the early
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101
days of the ‘technology boom’, O’Neil
not kept up with the times in the past
points to the first real attempts of
20 years and that’s because of the
major corporations trying to go digital
significant cost involved.”
and what he has begun to notice is
As the data center space continues
that despite an initial investment and
shift towards the modernisation and
overall enthusiasm, some industry
infrastructure changes are driven
players have fallen behind.
through regulatory and security
“I remember seeing how much they
concerns, segmentation and micro-
spent and how much time and effort
segmentation are tools with which
that they dedicated in order to do the
businesses are looking to control
initial implementations,” he says. “But
access to their resources. The inability
some of these very same players have
or reluctance to adapt and invest, for w w w.busi ne ssc hief. com
Rethinking Segm WannaCry. NotPetya. SamSam. It’s not a question of if your network will be breached, but when. Of course you take all the usual protective measures: antivirus, intrusion prevention, firewalls, etc. But the best thing you can do to mitigate the risk is to segment your network. With segmentation, you logically separate your network into secure zones, each of which is compartmentalized and isolated from all others. For example, the server on which your allimportant intellectual property (IP) is stored can be placed in one segment, and the part of the network your security cameras are attached to can be another segment. There’s a wall between the two. The benefit of this? If—or rather, when—a device like a security camera is hacked, what goes on in that segment stays in that segment. Containing the malware or cybercriminal to just one localized portion of the network minimizes potential damage. Your IP stays safe. Not incidentally, segmentation also guards against insider threats because sensitive data and systems can be isolated from “curious” employees attempting to venture where they don’t belong.
Everyone Talks Visibility. We Actually Do It. It Starts With 100% Device Visibility.
www.ForeScout.com
mentation Win the compliance game Segmentation also helps you more efficiently comply with regulations that otherwise can be burdensome—and costly if you fail the audits. Take the PCI Data Security Standard (PCI-DSS). Adhering to PCI-DSS means protecting the entire cardholder data lifecycle as it flows to and from payment devices, applications, infrastructure and customers.
This is so difficult that only 52.5 percent of businesses surveyed in 2017 were fully compliant with their annual PCIDSS audit, according to the Verizon 2018 Payment Security Report. Segmentation can reduce the areas of your network that come under audit and thereby increases your odds of being compliant.
Why segmentation hasn’t caught on—yet Segmentation isn’t new. Traditional methods for segmenting networks such as virtual local area networks (VLANs) and access control lists have been around for decades. But most segmentation projects never get off the ground. They’re too complex and labor intensive given the heterogeneous nature of most enterprise network environments, and have traditionally required learning multiple tools from different vendors. The fact that most of these environments are now distributed across data centers, campuses and the cloud doesn’t help. Then there’s the potential to disrupt your business. How do you write business policies so precisely that each of your employees has access to the exact network resources they need to do their jobs—but no more? You don’t want to prevent a senior engineer from meeting a critical deadline because the data she needs is on the other side of a segment wall. Neither do you want her wandering freely through sensitive HR data. The biggest challenge in segmentation is that you don’t really know your network. You don’t have sufficient context to build intelligent policies.
But the bottom line is, if you can’t answer simple questions about what’s connected to your network, you can’t hope to protect your business.
Segmentation—do it right with ForeScout ForeScout is focused on making segmentation an attainable reality for businesses.
Deploy the ForeScout platform, and you immediately know what’s connected to your network. Everything. PCs. Servers. Printers. Internet of Things (IoT) devices like medical equipment and lighting systems. Operational technology like manufacturing equipment. The instant something— anything—attaches to your network, you know about it. No manual scans or software agents required. Because we’re vendor agnostic, we work across heterogeneous environments and legacy networks and with other technologies such as next-generation firewalls (NGFWs.) Then, we work hand-in-hand with your current solutions to automate your defenses.
ForeScout: Transforming security through visibility™ Visiblity is foundational to segmentation. It’s non-negotiable. You can’t protect what you can’t see. ForeScout addresses the barriers to effective segmentation: complexity, high cost, vendor lock-in, and, most importantly, lack of device transparency. With ForeScout, segmentation is a security strategy that is now achievable.
Pedro Abreu Chief Strategy Officer ForeScout Technologies, Inc.
PWC
E X E C U T I V E P R OF IL E
Don O’Neil 104
Don O’Neil is a Director in PwC’s Cloud Computing and Networking practice with a focus on network and infrastructure security. PwC’s CCN solution capabilities span IT Strategy, Shared Services & Outsourcing Advisory, Business Systems Integration, Enterprise Architecture, Technology Infrastructure Solutions, and Business Continuity. Don’s areas of expertise include infrastructure security (Zero Trust, VPN, wired, wireless & service provider), data center consolidation and builds, high availability infrastructure builds, networking, mobility, and enterprise architecture. Don has extensive indepth operational, management and infrastructure technical knowledge across the entire network, storage and compute stack. Industries targeted include media and production, energy, oil & gas, health care, education, government, gaming, finance, banking, retail, telecommunications, technology, travel, security and enterprise solutions. Don is a former CTO of a Infrastructure as a Service (IaaS) start-up in Silicon Valley.
OCTOBER 2018
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“Look at it like this. You always lock your front door in your house. But once somebody’s in your house, you really should be locking all the rooms’ doors so that you can control access to all the individual rooms.” With the immaturity of tools at their disposal, thanks to a lack in investment, dangerous situations can arise for organizations. This is especially the case as O’Neil believes it is only within the past three years that the marketplace has started to catch up to the notion that network access control, and the security surrounding it, is one of the most important components of any edge network companies brings a key challenge
control, network segmentation or
around the security of networks.
micro-segmentation.
“It’s left the door open for hackers
Navigating this changing market-
and bad actors to get into these
place, and supporting these organiza-
networks and cause serious prob-
tions through it, forms what O’Neil
lems,” says O’Neil. The problem then
strives to achieve with PwC. For him it
it seems is that as market players
becomes a task of enabling a shift in
move infrastructure towards cloud
thought process, from a development,
data centers they do so with the
deployment and management and
wrong mentality. As O’Neil notes,
operations point of view, as well as from
most organizations focus on the
a tool set perspective.
security and segmentation of their
The problem he feels is that the
data centers with a ‘front door’ or
demands of the data center customer
perimeter mentality.
have driven companies to invest w w w.busi ne ssc hief. com
105
PWC
massively in physical and cloud
says. “Then they just keep throwing
infrastructure as a means of stem-
additional resources in to that bucket
ming the capital costs associated
rather than going through and slicing
with expanding their infrastructure
that bucket up into smaller areas and
internally.
providing adequate control in and out
This is only intensified by the changing regulations surrounding
Nevertheless, regulations surround-
data and network infrastructure,
ing data control has and will continue
such as GDPR and data sovereignty
to drive technological development
across Europe. Companies are now
and implementation and this requires
required to know about every part
the CIOs and CTOs of the world to
of their data centers and be able to
stay ahead of the game in order for
control the flow of that data.
their organisations to not fall behind.
“Many organisations treat their data 106
of those smaller areas.”
centers like one giant bucket,” he
The tools and the traditional way of approaching things, O’Neil explains,
“ Look at it like this. You always lock your front door in your house. But once somebody’s in your house, you really should be locking all the rooms’ doors so that you can control access to all the individual rooms” — Don O’Neil, Director, Technology Consulting OCTOBER 2018
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are simply inadequate to meet the
tries are responding and more impor-
changing regulatory requirements.
tantly how that can translate into
“It means that applications may have
the value they can bring to their own
to be re-architected, new infrastruc-
customers.
ture deployed and it means additional
“We share our experiences with
tools will need to be brought in,” he
other clients in the same industry, or
says. “It’s a complicated process and
similar industries in similar situations.
a costly one.”
We learn how other clients have solved
This is where PwC works with some
a problem and share the information
of the biggest corporations and
that we get on a regular basis from our
businesses from all over the world
vendors,” he says. “What this does is
across a number of sectors. This
allow us to find different approaches,
provides O’Neil and his team with
different product solutions, and enable
a real global perspective of how the
greater value.”
market is changing, how the indus-
This approach extends to the
w w w.busi ne ssc hief. com
107
PWC
company’s relationship with its
stand the technology trends that are
customer base. O’Neil seeks to
both enabling and restricting growth
understand what the customers have
across the industry. As companies
tried, where they’ve been successful
move towards segmented data
and where they’ve experienced
centers their operating models are
challenges and failure. For him,
shifting also, becoming far more
understanding this is the secret
software defined than ever before.
to enabling future success.
This is due to the flexibility it provides
“Being successful or not being
them, but as O’Neil warns, there is
successful is really irrelevant,” he
a growing danger that comes with
says about deploying specific
moving some of the control of
technologies. “But taking key lessons
network and data away from people
and applying those to the next
in-house.
project, and sharing those amongst 108
“If you have fifty people in an IT
the team and across the entire
organisation trying to solve a problem,
business is very, very important. It’s
but then you have millions of people
about how we share that with our
out there exploring and poking and
clients, and how the clients share
prodding, looking for problems, it’s
it with us.”
just a pure numbers game,” he says.
In collaborating and communicat-
“The people looking for the problems
ing with its customer, vendor and
are going to win, not the people trying
client base, PwC can better under-
to protect against the problems.”
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“ One day I think it will become everything as a service. That means network as a service, servers, web services, storage, applications, and software as a service. As a result, we’re going to move from a more traditional ‘I own the infrastructure’ model to a ‘I consume the service’ model”
109
— Don O’Neil, Director, Technology Consulting
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PWC
CLICK TO WATCH : ‘PWC AT DAVOS 2018: LAUNCH OF THE 21ST ANNUAL GLOBAL CEO SURVEY’ 110
The issue of cyber security is unlikely to go away any time soon, if at all, but O’Neil can already see the
end-to-end control from the user to the data center. “That really is the ultimate approach
industry responding and fighting back
that we preach through identity-
to better protect its networks and
based control,” says O’Neil. “Under-
infrastructure. Technology solutions
stand who’s connecting to the
providers are investing in and
networks, what they are connecting
developing software-defined control
to and be able to control the entire
systems in order to better identify and
path along the way via those software
understand more information around
controls.”
what devices are connecting to data networks. It’s not just internally as more and
Over the past twenty years the network and infrastructure market has transformed far beyond the
more vendors are looking at the other
historic flat, uncontrolled networks.
side of the equation, providing
As technology continues to evolve,
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1998
Year founded
223,468
Approximate number of employees
111
PwC has to be prepared to evolve
“That means network as a service,
with it and be ready for the next
servers, web services, storage,
market evolution. O’Neil believes that
applications, and software as a service.
the next paradigm shift will be very
As a result, we’re going to move from
much a continuation of the current
a more traditional ‘I own the infra-
market trend, with customers and
structure’ model to a ‘I consume the
clients seeking out the flexibility of
service’ model.”
software-defined networks and infrastructure. “One day I think it will become everything as a service,” he says. w w w.busi ne ssc hief. com
AHEAD OF THE CURVE IN THE EVOLVING TECHNOLOGY SPACE After 30 years of operating, Align continues to define the digital landscape of the data center world
WRIT TEN BY
DA LE BENTON PRODUCED BY
TOM VENTURO
A L I G N C O M M U N I C AT I O N S
F
or over 30 years, Align has provided next-generation solutions designed to manage client technology needs, optimize
their business operations and secure their IT infrastructure. It does this through three key areas – Professional Services, Managed IT Services and Cybersecurity Risk Management. However, it goes without saying that what worked 30 years ago – or even five years ago – no longer guarantees it will meet the technology needs of today, and of tomorrow. As such, technology solutions providers have had to evolve and innovate faster than the market in 114
order to not only serve this changing client base but stay ahead of the curve. “As a company we’ve been extremely fortunate to evolve with the way that technology has changed and to stay on the cusp of what’s happening with the future landscape of technology,” says Art Dooling, Managing Director, of Align. “Let’s be honest, technology has evolved so much over the last 30 years that we’ve had to. What we were doing 30 years ago is completely different to what we are doing today.” Align was formed in 1986 in a pre-internet age. In fact, Align was formed merely five years after IBM launched the very first, commercially available, personal computer. Dooling, along with Tom Weber as Align’s Director of Data Center and Design, both share a unique OCTOBER 2018
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A L I G N C O M M U N I C AT I O N S
perspective of the emergence of new technologies — matched with increasing client demands and expectations — and as such they both understand the importance for Align to continuously redefine what it can do for its clients. “Companies around the world are developing something new on an almost daily basis,” says Weber. “The fact of the matter is that as a firm you simply cannot put your focus into every new solution or product. You have to select the right ones and develop 116
solutions that allow our customers to maximize the efficiencies that these new technologies afford.” This understanding is written into the company’s very DNA with both Dooling and Weber pointing to a saying that defines the strategic direction of Align: if our firm was doing the same thing it was doing five years ago we would be out of business. One particular market that is undergoing substantial growth and momentum is the data center space. Over the past decade, data center investments have soared as more and more companies are moving legacy infrastructure into cloud solutions and leasing OCTOBER 2018
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“ Developers and companies around the world are coming out with something new on an almost daily basis” — Tom Weber, Director of Data Center and Design
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A L I G N C O M M U N I C AT I O N S
“ They come in with an intelligent group of technologists of their own that support their business and Align has been able to take advantage of this knowledge exchange and take that forward to other clients” 118
— Art Dooling, Managing Director
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Power busway system for a leading cloud computing customer w w w. b u s i n e s s c h i e f. c o m
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Build in progress: 2-tier cable conveyance system and cabinet floor grommets for a colocation services customer purpose-built data center whitespace. Align has designed power, cabling and
competition increasing daily,” says Weber. “But Align is defined by being
pathways for over 250MW of production-
ahead of the curve. So, what do we do
ready data center space as it looks to
to push our solutions offering further?
provide “a solution for everyone.”
We strive to provide more cost effec-
This is Weber and Dooling’s domain
tive data center designs, workplace
as Weber takes charge of the design
technology solutions, audio visual
and build of the whitespace and
technology, Wi-Fi and big data. These
Dooling oversees the physical imple-
are hot topics right now, but it’s impor-
mentation of data center technologies
tant to understand what is ahead and
— the migration of the data and moving of applications and workloads. “It’s an amazingly hot market with OCTOBER 2018
think about a year, or two or three years’ time. You’ve got to continually refresh and upgrade the skillsets on
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$75mn+ Approximate revenue
Align with a unique insight into what clients are asking for and how well Align is adapting and exceeding those expectations.
1986
Year founded
“Our greatest advantage is the diversity of clients that we have, and what they’re trying to do in various industries, whether it’s health, whether it’s financial, whether it’s pharmaceutical, retail, media, you name it,” says
165
Approximate number of employees
Dooling. “Our customers have worldclass engineers and technologists of their own to support their business. Align strives to partner with these teams, understand their business model, its pain points and to use this knowledge to introduce new technologies and
your team. But our differentiator is to
smart solutions that improve efficiency
provide top customer service. The
and eliminate their IT challenges.”
customer needs to feel like they are
Integral to this knowledge exchange
your biggest and only priority. That is
is people — and Weber firmly believes
what Align offers.”
that Align employs some of the smartest
Key for Align is understanding
and most innovative people in the
exactly how and where the market is
industry today, when a number of
shifting and this is achieved by its close
companies in the data center industry
collaboration with clients and partners
look to third parties for the skillsets and
across the globe. Align works with
talented and knowledgeable workforce
major customers across all market
completely in-house. This is crucial in
sectors and Dooling believes that each
delivering the best possible service to
client and each relationship provides
the most important component of w w w. b u s i n e s s c h i e f. c o m
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A L I G N C O M M U N I C AT I O N S
122
Align’s proven framework includes the governance, process and tools to collect, store and analyze application and infrastructure technology to support future state transformations
Align’s entire value chain, the client. “As a firm we are technology agnos-
whether it’s a networking architecture question or a simple cable plant item.
tic and we present ideas and recom-
My SME colleague can give me the
mendations based on client needs,”
right insight or multiple options to solve
says Weber. “So what we have done is
our customer’s challenge. That’s real
we have ensured that in every area of
value for our customers.”
our business we have people who know
Naturally, as a technology company
their specialty and are true leaders in
that has been in business for over
that field.”
three decades, Align has established
“Our professionals are so knowl-
and fostered key strategic partners to
edgeable, in all the leading solutions,
help the company to continue to grow
that I can lean back and ask a question
and remain a leader in the field. But
or ask for an opinion from any one of
what is it that makes a key partner?
our Subject Matter Experts (SME),
How does Align not only select the
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123
“right” partner but continue to work with that partner both today and in the future? For Align, it’s a combination of working with leaders in the field, but also leaders who are willing to grow with Align. “We try to look first at the leaders in the field, but also ask: who is innovating? Who is sticking with their product and selling it year in, year out? And who is actually seeing issues out in the field and making manufacturing changes to solve these issues?” says Weber. Weber recognises that it’s not a one-
“ We really take every project personally and if we’re taking on a project for you… it’s going to get done better than anyone else could do it” — Art Dooling, Managing Director w w w. b u s i n e s s c h i e f. c o m
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way relationship and that Align must allow itself to be held to the same standards that it expects of its partner network. “I think they look at it the same way. There are leaders in the field, and then there are innovators. If you can get both in one company, that’s tremendous. We are committed to finding partners who employ the leading innovators and the strongest leaders in the field.” Dooling feels that this is best represented in the company’s approach to Managed IT Services. For him it is imperative that
“ There are leaders in the field, and then there are innovators. If you can get both in one company, that’s tremendous” — Tom Weber, Director of Data Center and Design
the company understands what “Day-Two”
125
looks like, not only for the partners, but also for the client. “Sure, it’s great we sold a solution and are working together, but then what?” asks Dooling. “What happens in 12 months or five years’ time and they’re looking to expand or grow? Where will this technology take them? I think that’s what we’re smart about, asking those questions to understand where these technologies are going and how we can grow together.” Having been with Align from the very beginning, Weber has seen first-hand just how much the company strives to be the very best. For him this isn’t just talking the talk, as he says Align truly “walks it” and he can point
Patching from switch port replication panels w w w. b u s i n e s s c h i e f. c o m
A L I G N C O M M U N I C AT I O N S
Leveraging data captured during the current state, Align will work with your team to determine the future state(s) and costs for each app based on business requirements and technical standards
126
to a number of successful engagements
premier firm for our clients, and we are
as proof. But it’s not just about the size
delivering on that. In my time here I can
of a client or the profit margins that
honestly say we have never lost a client
Align has amassed and achieved over
due to not meeting expectations. We
the years, Weber believes the success
have always met and exceeded them
can be measured by one simple metric.
because of our people, our process
“We have been incredibly successful
and our tools.” And a measure of that is
over the years and for me it’s down to
that over 90% of Align’s customers are
our communication and our honesty,”
repeat clients.
says Weber. “We aren’t the cheapest firm out there, but we strive to be the OCTOBER 2018
As the company looks to the future — with Dooling readily admitting that he
CONSTRUCTION
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and the business has to have an eye
a project for you, it’s going to get done
well and truly on tomorrow — it is those
and it’s going to get done better than
three elements that he identifies as the
anyone else could do it.”
key to the longevity of Align both now and in the future. “For me our value comes from the processes that we have in place, the expertise that we have, and the tools that we use,” he says. “We really take every project personally, and if we’re taking on w w w. b u s i n e s s c h i e f. c o m
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Jabil pushing forward digital transformations
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JABIL
$19bn
Approximate revenue (2017)
1966
Year founded
180,000 130
Approximate number of employees
MANUFACTURING SERVICES LEADER JABIL IS ENABLING DIGITAL TRANSFORMATIONS, BOTH WITHIN ITS OWN ORGANISATION AND FOR ITS CUSTOMERS WORLDWIDE WRIT TEN BY
JA MES HENDERSON PRODUCED BY
CHARLOT TE CL ARK E
O
rganisations around the
world are embarking on company-wide transfor-
mations, embracing a future de-
fined by technology. But Jabil – a manufacturing services leader employing approximately 180,000 people – finds itself in the unique position of driving both its internal digital transformation, as well as leading transformative efforts on behalf of some of the biggest
OCTOBER 2018
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and best-known brands in the world. Jabil categorises the role it plays in
sively complex supply chains. We partner with these companies to streamline
its customers’ digital transformations
supply chain orchestration while helping
into three sections, says John Caltabi-
them reduce cost and risk.
ano, VP of Supply Chain Management.
“The second category of customers
“We’re a manufacturing services provider
are those going through a transforma-
so we support diverse customers across
tion due to market disruptions. They
a variety of markets with different digital
may be going through divestitures or
transformation needs. You can group
acquisitions. They also may be facing
these customers into three general
major changes in their industry sector,
categories. In one category are large
which requires them to reshape how
multinational organizations with mas-
they operate. These organizations look w w w. b u s i n e s s c h i e f. c o m
JABIL
to us for thought leadership, market benchmarking and product proof of concept support. It’s a very collaborative approach. “Then you have a third kind: customers that are really up-and-coming and don’t have to rectify historical issues. They can concentrate on what they’re good at and say to Jabil, ‘I want you to run my supply chain’. Their perception is that they’re not going to invest in those capabilities, when we can do it for them.” At the same time, Jabil is transforming how it runs its own supply chains, and is 132
implementing a digital initiative around the platforms it utilises to deliver its services, signalling a move towards cloud-based infrastructure. The size of the business – over 100 factories in 29 counties, hundreds of customers and a supply chain of 17,000 companies – means the transformation is one of real scale. New technologies have already transformed how Jabil operates from a procurement perspective, says Caltabiano. “The size of our company means we have hundreds of contract negotiations going on at any one time. It’s critically important for us to expedite report generation, quickly produce analytics, drive rapid negotiations and produce results that help our customOCTOBER 2018
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JABIL
“ I F YOU’RE BUILDING PRODUCTS DESIGNED 15YEARS AGO WITH A SUPPLY CHAIN THAT WAS IMPLEMENTED 15 YEARS AGO, IT’S HARD TO TRANSFORM YOURSEL” — John Caltabiano, VP of supply chain management
ers achieve better business outcomes. “With our digital platforms and tools, we now utilise, data and analytics are available in real time, so we can start negotiations at any time. We can deploy pricing as soon as negotiations are completed, which changes the whole dynamic of time-fenced events. We now can change the conversation with suppliers very quickly based on our analytics and actionable insights.”
Engaged in Tiel-1 Cables Wire harness and cable assembly manufacturer and supplier; specialized in custom product for small and large OEM manufacturers in various industries and applications. t: +852 27999456 f: +852 27587355 e: sales@datafield-hk.com www.datafield-hk.com/df
S U P P LY C H A I N
CLICK TO WATCH : ‘JABIL COMPANY OVERVIEW’ 135
Working with so many companies in
After all, if you’re building a product
locations across the globe gives Jabil a
designed 15 years ago with a supply
better perspective than most when
chain that was implemented 15 years
speaking about industry sectors keen
ago, it’s hard to transform how you
to embrace disruption and digitisation.
operate because of long-term invest-
It is Caltabiano’s belief that companies
ments and legacy operations.
in the markets that are being most
“To an extent, how prepared compa-
significantly disrupted – notably by IoT
nies are to embrace the change is partly
– are ‘moving the fastest’.
dictated by the dynamics of the industry
“I think the regulated businesses are the slowest,” he observes. “Regulated
they work in.” When it comes to Jabil’s own digital
products tend to have lengthy life
transformation, the company is on a fast
cycles, which makes it difficult to change
track, analysing how new technology
the way you run their supply chains.
can speed the myriad transactions that w w w. b u s i n e s s c h i e f. c o m
JABIL
“ WITH THE DIGITAL PLATFORMS AND THE DIGITAL TOOLS WE NOW UTILISE, DATA AND ANALYTICS ARE AVAILABLE REALTIME, SO WE CAN DO NEGOTIATIONS ANYTIME WE WANT” 136
— John Caltabiano, VP of supply chain management
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JABIL
“ W E HAVE TO THINK DIFFERENTLY BECAUSE IT IS A NEW GENERATION OF PEOPLE WE’RE HIRING. YOU HAVE TO THINK ABOUT WHAT’S INTERESTING TO THEM” — John Caltabiano, VP of supply chain management
take place every day. “We have, in my division, 1,500 buyers, so I’m buying over 350,000 parts on a quarterly basis,” says Caltabiano. “That’s very transactional and repetitive and there is certainly the opportunity for part of that decision-making process to be accelerated and streamlined through digitisation, automation and analytics.” Jabil believes that by automating some of the more transactional responsibilities, the prospect of a career in manufacturing and supply chain operations will become even more attractive to emerging young talent.
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EXECUTIVE PROFILE
John Caltabiano is Vice President , Global Supply Chain at Jabil and is responsible for all Materials and Customer Supply Chain Solutions for the company’s Engineered Solution Group Division. He is responsible for driving supply chain strategies for all of ESG’s Businesses. Prior to this role, John was Vice President of Global Sourcing where he was responsible for World Wide Commodity Management, Sourcing, Centralized Procurement and Supplier Development covering a spend of over $12 Billion. With more than 30 years of supply chain experience, John recently returned to St. Petersburg, Fla., following a three-year assignment in Singapore.
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“People who come into the workforce don’t want to sit at a desk and place orders. A machine could do that. We have to think differently because it is a new generation of people we’re hiring. You have to think about what’s interesting to them. “We recruit new college grads out of supply chain curriculums, from some of the top schools, and they can bring a lot of talent to the manufacturing sector. What we can do is attract them with our digital tools. They want to dive into it and they’re exactly the kind of people we want because to take 140
this forward, you have to have practitioners. “We can’t go back to the old way, because they will come in and only think about the new way. A benefit of the transformation has to be bringing in the talent that knows how to use these tools and think differently about their work.”
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